Invest

Investment ROI calculator

This calculator turns gross yield into net — the figure that actually stays with you after Spanish taxes and costs. Enter your own numbers or start from the example, and see net yield and payback from rent alone.

Estimated NET yield
2.8%
Gross rental income/yr€15,750
Annual costs-€3,500
Rental tax-€2,328
Net income/yr€9,923
Payback (rent only)35 yrs

Indicative. Excludes capital growth & purchase taxes.

How it works

We take the purchase price and gross yield, multiply by occupancy (the real share of the year the property is let), subtract annual costs (management, IBI property tax, community fees) and rental tax on the taxable income. What remains is net income; dividing the price by it gives payback from rent alone.

Spanish rental tax for non-residents

Non-residents pay tax on rental income at a flat rate: 19% for EU/EEA residents and 24% for everyone else (e.g. the US, UK, Switzerland). EU residents can deduct costs before tax; non-EU residents generally cannot. The calculator uses a simplified income-minus-costs model — confirm the details with a tax adviser.

Assumptions and disclaimer

The calculation is indicative. It excludes property value growth, purchase taxes and fees (ITP/IVA, notary, registry — usually 10–13%), mortgage interest and currency movements. It is a tool for comparing scenarios, not a financial guarantee.

Want an exact figure for a specific property?

We will send new-builds matching your target yield and calculate the ROI on real deal numbers.

Frequently asked questions

How is net yield calculated here?

Gross rent = price × yield × occupancy. From it we subtract annual costs and rental tax on the taxable income. What remains, divided by the purchase price, is the net yield.

Which tax rate should I use — 19% or 24%?

EU/EEA residents pay 19%; everyone else (US, UK, Switzerland, etc.) pays 24%. EU residents can additionally deduct costs before tax.

Does the calculator include purchase taxes?

No. It shows the annual rental yield and excludes one-off purchase taxes and fees (usually 10–13%), mortgage interest and value growth. It is a comparison tool, not a guarantee.

Which costs does the ROI calculator include?

The annual costs field bundles typical owner expenses: community fees, IBI property tax, insurance and rental management. Vacancy is modelled separately via the occupancy input, and rental tax is applied at the rate you choose (19% or 24%). Mortgage payments are not included.

What is cash-on-cash return when buying with a mortgage?

It measures your return against the cash you actually invest — the deposit plus purchase costs — rather than the full price. When the net yield exceeds your mortgage rate, leverage can lift the cash-on-cash figure. Use it together with our mortgage calculator.

How do non-resident taxes change my net yield?

EU/EEA landlords pay 19% and can deduct expenses; non-EU landlords pay 24% on gross income with no deductions. In practice that typically costs about 1–1.5 percentage points of yield. The calculator applies whichever rate you select.